Warren, Senate Democrats ask feds to warn students about next Trump U

JillianBerman

Reporter

Sen. Elizabeth Warren (D-Mass.) is asking the government to guard consumers against any future Trump Universities.

Warren and several other Democratic senators sent a letter to the Department of Education, the Consumer Financial Protection Bureau, the Federal Trade Commission and the Department of Veterans Affairs Thursday asking the agencies to create a tool to warn potential when a company markets itself as a university, but isn’t accredited.

Harry Potter makes a magical comeback

(3:11)

Nine years after publishing the seventh and final installment of the Harry Potter series, author J.K. Rowling is creating a second act for the boy wizard through a sold-out play, a new best-seller and a fresh film series.

“[We] ask that you take proper and necessary steps to prevent the creation of additional Trump University-like entities that prey on the hopes, dreams, and aspirations of students and their families,” the letter reads.

The letter comes as Trump University, a now-defunct real estate seminar program bearing the name of Republican presidential candidate Donald Trump, is facing multiple lawsuits. Warren has frequently criticized Trump on Twitter and in other venues in her role as one of the most powerful surrogates for Democratic candidate Hillary Clinton.

The suits against Trump University accuse the program’s staffers of luring them into paying tens of thousands of dollars for access to real estate courses and mentors that could help them with a future career. Promises that ultimately proved false, the plaintiffs say.

Trump has repeatedly defended the school, saying that it received “literally thousands” of positive reviews and that the trial should be dismissed. The Trump campaign didn’t immediately respond to a request for comment.

Still, Warren’s letter highlights the school’s controversial past, the state of New York warned Trump University in 2005 that the program was violating state law by using the phrase “university” even though it wasn’t licensed as such by the state. The program ultimately changed its name to “Trump Entrepreneur Initiative” in 2010. But in the intervening years, representatives used terms like “tuition,” “faculty” and “curriculum” to lure students, implying that the school functioned more as a traditional university, the letter states.

“When students or veterans hear terms like these, they should be able to feel confident that they are investing in their future, not throwing their hard-earned money into a scam,” the senators write.

The letter is asking the agencies to work together to create a consumer information tool or online database that warns potential students if a program is unlicensed. The senators are also asking the organizations to prioritize enforcement of consumer protection laws against dubious educational entities, their owners and those who “lend their name” to the programs. They’ve asked the agencies to respond by Aug. 31.

“We look forward to learning the steps you will take to ensure that consumers receive appropriate warning before spending hard earned dollars on programs like those offered by Trump ‘University,’” the senators write.

Kelly Leon, a spokeswoman at the Department of Education, said in an email that the Department has received the letter and they “look forward to responding.” A CFPB spokeswoman also confirmed that the agency received the letter, but declined to comment further. The other two agencies didn’t immediately respond to a request for comment.

Mortgage Rates

Powered by

This advertisement is provided by Bankrate, which compiles rate data from more than 4,800 financial institutions. Bankrate is paid by financial institutions whenever users click on display advertisements or on rate table listings enhanced with features like logos, navigation links, and toll free numbers. Dow Jones receives a share of these revenues when users click on a paid placement.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.